NasdaqGM:VCYT

Stock Analysis Report

Executive Summary

Veracyte, Inc. operates as a genomic diagnostics company in the United States and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Veracyte's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VCYT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.4%

VCYT

4.2%

US Biotechs

5.3%

US Market


1 Year Return

-2.0%

VCYT

1.6%

US Biotechs

-10.7%

US Market

Return vs Industry: VCYT underperformed the US Biotechs industry which returned 1.6% over the past year.

Return vs Market: VCYT exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

VCYTIndustryMarket
7 Day10.4%4.2%5.3%
30 Day-6.9%-3.9%-13.6%
90 Day-11.7%-5.2%-19.8%
1 Year-2.0%-2.0%2.4%1.6%-8.9%-10.7%
3 Year174.5%174.5%14.2%11.3%15.5%8.0%
5 Year195.1%195.1%-4.1%-8.4%35.2%20.4%

Price Volatility Vs. Market

How volatile is Veracyte's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Veracyte undervalued compared to its fair value and its price relative to the market?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCYT ($24.29) is trading below our estimate of fair value ($27.3)

Significantly Below Fair Value: VCYT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VCYT is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: VCYT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VCYT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VCYT is overvalued based on its PB Ratio (5x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Veracyte forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCYT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: VCYT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VCYT's is expected to become profitable in the next 3 years.

Revenue vs Market: VCYT's revenue (15.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: VCYT's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VCYT's Return on Equity is forecast to be low in 3 years time (2.4%).


Next Steps

Past Performance

How has Veracyte performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCYT is currently unprofitable.

Growing Profit Margin: VCYT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VCYT is unprofitable, but has reduced losses over the past 5 years at a rate of 15.2% per year.

Accelerating Growth: Unable to compare VCYT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VCYT is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (22%).


Return on Equity

High ROE: VCYT has a negative Return on Equity (-5.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is Veracyte's financial position?


Financial Position Analysis

Short Term Liabilities: VCYT's short term assets ($187.7M) exceed its short term liabilities ($17.5M).

Long Term Liabilities: VCYT's short term assets ($187.7M) exceed its long term liabilities ($18.3M).


Debt to Equity History and Analysis

Debt Level: VCYT's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: VCYT's debt to equity ratio has reduced from 11.9% to 0.3% over the past 5 years.


Balance Sheet

Inventory Level: VCYT has a low level of unsold assets or inventory.

Debt Coverage by Assets: VCYT's debt is covered by short term assets (assets are 270.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VCYT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if VCYT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Veracyte's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VCYT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VCYT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VCYT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VCYT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VCYT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Bonnie Anderson (61yo)

12.17s

Tenure

US$2,831,240

Compensation

Ms. Bonnie H. Anderson co-founded Veracyte, Inc. in 2008 and has served as its Chief Executive Officer and a Member of Board of Directors since February 2008. Ms. Anderson is Chairman of the Board at Verac ...


CEO Compensation Analysis

Compensation vs Market: Bonnie's total compensation ($USD2.83M) is below average for companies of similar size in the US market ($USD4.61M).

Compensation vs Earnings: Bonnie's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bonnie Anderson
Co-Founder12.17yrsUS$2.83m0.45% $5.5m
Keith Kennedy
CFO, COO & Secretary3.33yrsUS$1.47m0.12% $1.5m
Mark Ho
Principal Accounting Officer0.75yrno data0.037% $447.0k
Giulia Kennedy
Chief Scientific & Medical Officer11.58yrsno data0.16% $2.0m
Ashish Kheterpal
Chief Information Officer3.08yrsno datano data
Angeline McCabe
Vice President of Investor Relations and Corporate Communications1.67yrsno datano data
Jessica Meng
Vice President of Marketing2.25yrsno datano data
Alfred Bowie
Vice President of Corporate & Business Development1yrno datano data
John Hanna
Chief Commercial Officer3.17yrsno data0.042% $512.4k
Richard Kloos
Senior Medical Director of Endocrinology8yrsno datano data

3.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: VCYT's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bonnie Anderson
Co-Founder12.17yrsUS$2.83m0.45% $5.5m
Karin Eastham
Independent Director7.33yrsUS$99.33k0.027% $321.5k
Fred Cohen
Independent Director13.25yrsUS$88.33k0.080% $972.4k
Evan Jones
Independent Director12.17yrsUS$88.33k0.050% $607.7k
John Bishop
Lead Independent Director3.33yrsUS$112.33kno data
Tina Nova Bennett
Independent Director4.42yrsUS$87.33kno data
Kevin Gordon
Independent Director3.33yrsUS$97.33kno data
Robert Epstein
Independent Director5.25yrsUS$92.33kno data
Edison Liu
Member of Scientific Advisory Boardno datano datano data
Paul Ladenson
Member of Clinical Advisory Boardno datano datano data

4.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: VCYT's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.6%.


Top Shareholders

Company Information

Veracyte, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veracyte, Inc.
  • Ticker: VCYT
  • Exchange: NasdaqGM
  • Founded: 2006
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.209b
  • Shares outstanding: 49.74m
  • Website: https://www.veracyte.com

Number of Employees


Location

  • Veracyte, Inc.
  • 6000 Shoreline Court
  • Suite 300
  • South San Francisco
  • California
  • 94080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCYTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2013
12VDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2013

Biography

Veracyte, Inc. operates as a genomic diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas, which are used to identify patients with benign thyroid nodules among those with indeterminate cytopathology results in order to rule out unnecessary thyroid surgery; Percepta Genomic Sequencing Classifier for lung cancer; Envisia Genomic Classifier that help physicians to differentiate idiopathic pulmonary fibrosis from other interstitial lung diseases without the need for surgery; and Prosigna Breast Cancer Prognostic Gene Signature Assay test for assessing risk of distant recurrence. It sells its products through product specialists, account managers, and medical science specialists. Veracyte, Inc. has a strategic collaboration with Johnson & Johnson Innovation and the Lung Cancer Initiative at Johnson & Johnson to advance the development and commercialization of novel diagnostic tests to detect lung cancer at its earliest stages; a research collaboration with Loxo Oncology for the development of therapies for patients with genetically defined cancers; and a collaboration with Johnson & Johnson Services, Inc. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:07
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.